Affiliate Apocalypse – A4U Expo, 5.15 Day 2

[HelenMarie]

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Don't panic it's not quite that bad, just yet, but there is a panel around the challenges that the affiliate marketing industry faces which is being led by Duncan Popham of Total Search Solutions accompanied by myself, Kevin Edwards and Tina Judic.


We would really like to hear from members of the forum on topics they would like to be discussed. What are the topics that you always long for people to raise but they never do? The panel members at this session have years of experience, are extremely passionate about what they do and will be able to share thoughts and experiences from opposite ends of the industry.


So what are the topics you want to hear opinions divided on?

- the role of networks, is the current model sustainable?

- the professionalism of the industry

- attribution models, is this really a viable argument?

- affiliate agencies, what value do they add?

- PI cookies, is there a justification for tracking PI?

- closed brand groups, are they dated?

- affiliate security – do affiliates have enough financial security?


Let us know your topics either on this form or any of the panel members and we’ll endeavour to cover them at the session on Day 2.

Hope to see you all there

Helen

[renegade]

Hi Helen, I look forward to watching the panel shoot the breeze again this year.

I'd like to see the pros and cons of merchants slashing commission discussed. Naturally enough as times get harder many merchants looking to cut costs have cut commission. ISTM merchants would be more sensible to INCREASE commissions to encourage their paid on performance affiliates to strive harder for sales on their behalf. From personal experience when I read another merchant cutting commission I just take a look around their competitors and start pushing them instead.

I would also like to put in a request (to you and Duncan :-) that we DON'T talk about click attribution again - it's been years now and nothing has changed and I'm now really, really bored by the whole topic. The same goes for PI - and now DGM has gone does any network still operate PI - no don't answer that! On a related topic I'm also wondering if I'm the only one who has noticed a number of speakers seem to have forged a second career trotting out variations of the same presentation every year? No I am not volunteering to do better, I'm just saying...

On the topic of professionalism I'd say the industry is now so corporate it's ever harder for small businesses, let alone indivdual affiliates, to survive in affiliate marketing and the barriers to entry for new affiliates entering the industry are almost-insurmountable, discuss!

[HelenMarie]

Hi Joe,

Thanks very much for your comments, great ideas here. In terms of attribution, I think perhaps we should bring it up still but exactly along the lines of what you have said - why are we talking about this?! In terms of PI, I've seen this making a comeback, but for individial afiliates, so perhaps one to raise a few eyebrows. The point about barriers to entry is a really great one as well, we'll make sure that is in.

Thanks!
Helen

[saxon68]

I am sure this may be covered in another session but just incase its not here is a suggestion from an earlier post:

Title: Creating a mechanism to ensure protection of affiliate earnings.

With many larger networks merging in recent years. Are the smaller networks a risky option?

A topic suggestion modified from an article by: John Gilbert -Jupp

DGM UK was entering into administration without notice to affiliates again proved that affiliates seem to be at the bottom of the pile when it comes to payment protection.

Networks generally have no mechanism in place to ensure protection of affiliate earnings.

No network to date separates the revenue allocated for affiliate commissions into escrow, separating these monies from their general expenditure. This means that there is no underlying guarantee of payment protection directly for affiliates. Reputable networks like Affiliate Window spend huge sums of money on credit insurance each year. This ensures that the network gets paid for all merchants in the event of merchant defaults and this goes some significant way to ensuring affiliates get paid.

Yet what precise level of protection does ANY network provide to protect affiliates from network over exposure beyond the laudable activities of voluntarily provided information on merchant credit protection and an alert system on merchants behind with payments? There is no mechanism in place which states that affiliate earnings are ringfenced and will be paid even if the network folds.

Ringfenced earnings is surely a must-do to create confidence moving forward?

Grant

[Iskander]

Hi Helen - thanks for reaching out.

I brought this up with Kevin at ThinkVisibility in Leeds last month and I think it cannot be underestimated and it MUST not be brushed under the carpet:

Mobile device "Native Apps" represent a new e-commerce channel, hitherto non-existent. Apps have been around for just over two years now but they are now becoming very mainstream. Apps WILL compete with websites for online transactions and they WILL, over time, be the preferred channel for 25%, 30%, 40% of online e-commerce transactions.

As yet, no-one is talking about HOW to adapt the CPA model so that it allows for referrals to, tracking within and commission payments from sales in apps. This requires:

a) a technological solution

b) industry adoption

c) a lot of thinking about how the model is going to work (tiny residual lifetime comissions in exchange for a one-time app download / commissions per sale within the app as with CPA on the web / something else...?)

Alan Lansdowne
Rounin Media (@rouninmedia)

[loquax]

On the topic of professionalism I'd say the industry is now so corporate it's ever harder for small businesses, let alone indivdual affiliates, to survive in affiliate marketing and the barriers to entry for new affiliates entering the industry are almost-insurmountable, discuss!

What Joe said as I can't think of any way of putting it better... although I'd like to add "are those barriers also now starting to make AM less attractive for those already involved as well as limiting new blood".

Sorry, won't be there to discuss (which might be a good thing lol)

Jason

[HelenMarie]

Thanks Alan / Jason - good topics again, we'll endeavour to cover them on Wed.